Tronox Holdings plc (NYSE:TROX) Analysts Are Pretty Bullish On The Stock After Recent Results

It's been a good week for Tronox Holdings plc (NYSE:TROX) shareholders, because the company has just released its latest full-year results, and the shares gained 5.8% to US$15.00. Revenues were in line with expectations, at US$2.9b, while statutory losses ballooned to US$0.36 per share. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

View our latest analysis for Tronox Holdings

Following the latest results, Tronox Holdings' six analysts are now forecasting revenues of US$3.09b in 2024. This would be a notable 8.5% improvement in revenue compared to the last 12 months. Earnings are expected to improve, with Tronox Holdings forecast to report a statutory profit of US$0.35 per share. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$3.04b and earnings per share (EPS) of US$0.65 in 2024. So there's definitely been a decline in sentiment after the latest results, noting the large cut to new EPS forecasts.

Althoughthe analysts have revised their earnings forecasts for next year, they've also lifted the consensus price target 8.1% to US$16.63, suggesting the revised estimates are not indicative of a weaker long-term future for the business. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. There are some variant perceptions on Tronox Holdings, with the most bullish analyst valuing it at US$19.00 and the most bearish at US$14.00 per share. As you can see, analysts are not all in agreement on the stock's future, but the range of estimates is still reasonably narrow, which could suggest that the outcome is not totally unpredictable.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of Tronox Holdings'historical trends, as the 8.5% annualised revenue growth to the end of 2024 is roughly in line with the 9.0% annual growth over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to see their revenues grow 4.4% per year. So although Tronox Holdings is expected to maintain its revenue growth rate, it's definitely expected to grow faster than the wider industry.

The Bottom Line

The most important thing to take away is that the analysts downgraded their earnings per share estimates, showing that there has been a clear decline in sentiment following these results. Happily, there were no major changes to revenue forecasts, with the business still expected to grow faster than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that in mind, we wouldn't be too quick to come to a conclusion on Tronox Holdings. Long-term earnings power is much more important than next year's profits. At Simply Wall St, we have a full range of analyst estimates for Tronox Holdings going out to 2026, and you can see them free on our platform here..

It is also worth noting that we have found 2 warning signs for Tronox Holdings that you need to take into consideration.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.